5 Mistakes Shopping Home Insurance

5 Mistakes Shopping Home Insurance

Savannah Insurance Advisors takes great pride in being one of the most experienced, as well as top producing, home insurance agencies in Savannah and Coastal Georgia. You will not find better client service or a more competitively priced policy than what we offer. Our experience is that the majority of shoppers, when left to their own devices, will purchase coverages they do not fully understand. Trust us! The unintended consequences for “not knowing” is a painful price to pay. Do not allow yourself or your friends to make this mistake. Learn from our experience! Here are the most critical mistakes we find after a review of the average shoppers homeowners insurance.

1. Failing to consult with an expert.
This is by far the worst mistake. Home insurance is not like auto insurance. We highly recommend that you consult an experienced, well trained agent who is knowledgeable about your homes area. Sure, the Geico’s and USAA’s of the insurance world are great for auto insurance, but insuring a home in Costal Georgia is a different proposition. Do you know the exclusions of a home insurance policy? Is wind and hail damage included? What is the correct amount should you insure your home? An experienced agent knows and they will ask the right questions to be sure they have you properly covered. Using an agent is no extra charge and it will help to ensure that you avoid the easily overlooked mistakes we discuss below.

2. Selecting a high deductible plan.
This is most common for shoppers for new home insurance policies. The top insurance companies are now offering very high deductibles ($5000 & up) for named storm, wind and hail claims, and in some cases all types of claim. Most often these high deductibles are offered only to keep the premium affordable. High deductibles are something that should not be considered with a simple shoulder shrug. For example, can you afford to pay $10,000 out of pocket for a fix? A high deductible plan could put you in that exact situation, which can lead to even worse consequences. Consider carefully and be sure to select a deductible that you can actually afford if a claim strikes.

3. Waiving critical coverage or assuming coverage.
Thinking about passing on liability insurance? What is the risk? An experienced agent knows. Are collectibles, guns and jewelry covered? Yes and no. With home insurance and the many options, the answer is not clear unless you have a professional that can explain the policy they offer you in detail.

4. Failure to review home insurance.
No, your premium will not remain the same year after year. Things constantly change, and over a period of a few years reviewing your homeowners policy is not optional. A review is your due diligence! More often than not, when we review a policy new clients will tell us their home insurance policy has never been reviewed. What we find during reviews is that discounts are not granted, and most often a home is over insured. Why do rates keep going up? Well, that is exactly why you should review your home, flood, or any property insurance policy at least every 2 years.

5. Over insuring their home.
This is common for people who are shopping their home insurance. What the average shopper does not know is that most every home insurance company will automatically increase coverage (usually about 3%) on home insurance policies at each and every renewal. They do this to make sure the policy keeps up with the correct replacement cost. Gradually, over a period of years, we find that these increases in coverage most often end up over insuring a home. This results in an unnecessarily higher premium. This problem can easily be addressed by having an experienced agent review the value of the coverage periodically, and adjust accordingly, to insure that the amount of coverage reflects the current replacement cost and not simply the market or loan value of the home. A good insurance agency or agent will be able to produce a detailed replacement cost estimate that will support their estimated value of coverage.